Crude Oil Futures: Probable correction lower
|Considering flash readings from CME Group for crude oil futures, open interest shrank for the fourth session in a row on Thursday, now by around 4.5K contracts. Volume, instead, extended the uptrend for another session and went up by 185.1K contracts, the largest single-day increase so far this month.
WTI now looks to $72.88
Prices of the West Texas Intermediate extended the rally beyond the key $70.00 mark per barrel on Thursday. The move beyond this key barrier, however, was on the back of shrinking open interest, opening the door to a probable corrective move in the very near term. This view is reinforced further by the current overbought conditions of the commodity, as per the daily RSI. The continuation of the rally now targets the May 2018 high at $72.88 per barrel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.